A broad sell-off in technology stocks pulled the S&P 500 and Nasdaq lower on Thursday, February 26, 2026, as initial investor enthusiasm for chipmaker Nvidia’s earnings report gave way to doubt and pessimism. Safe-haven assets, such as gold and U.S. Treasury bonds, gained ground amid the market shift.
Nvidia shares fell over 5% after the company released its quarterly results, wiping out $260 billion in market capitalization, marking the stock’s largest single-day decline since April. The Nasdaq Composite declined 1.2%, while the S&P 500 fell approximately 0.6%. The Dow Jones Industrial Average bucked the trend, finishing slightly higher.
The market’s reaction underscores growing investor nervousness surrounding artificial intelligence and its potential for sustained disruption. Despite exceeding expectations for revenue and profit, Nvidia’s earnings failed to inspire confidence, leaving investors questioning the long-term sustainability of demand and the potential for competitive threats. A lack of specific details regarding the outlook—which does not include potential revenue from China—contributed to the concerns.
Elsewhere in the market, shares of automaker Stellantis posted a full-year loss of $26 billion following an EV-related charge. Salesforce also saw shares turn higher after CEO Marc Benioff addressed concerns following a revenue forecast that fell short of estimates.
The recent market movements come as the possibility of interest rate cuts this summer appears to be receding. The market is now pricing in a 0.25% rate cut no earlier than September, influenced in part by speculation surrounding potential candidates for the Federal Reserve chair. If Kevin Warsh is confirmed and succeeds Jerome Powell in May, a pause in rate cuts appears likely, given the current inflation rate of 3%.
There was some positive news for the U.S. Housing market, as the average rate for a 30-year mortgage fell below 6% for the first time since September 2022. This development could provide some relief to potential homebuyers and potentially ease the housing crisis ahead of the November midterm elections. But, approximately 70% of existing mortgages have rates below 5%, meaning many homeowners may be reluctant to sell.
Key Market Movements (February 26, 2026)
- STOCKS: Nasdaq -1.3%, S&P 500 -0.5%. Dow and Russell 2000 were positive. New highs were reached overnight in Japan, Taiwan, South Korea, the United Kingdom, as well as the MSCI Emerging Markets and Asia ex-Japan indices.
- SECTORS/STOCKS: Seven of the eleven S&P 500 sectors declined, with tech down 1.8%. The Philadelphia Semiconductor Index fell 3%, and Nvidia dropped 5.5%. Financials gained 1.3%, and Paramount Skydance rose 10%.
- CURRENCIES: The dollar index finished flat. The British pound was the weakest performer among the G10 currencies, while most emerging market currencies declined. A notable exception was the Chinese yuan, which reached its highest level in nearly three years (onshore and offshore), marking the longest consecutive daily increase onshore since 2010.
- BONDS: U.S. Treasury yields fell 3 to 4 basis points, with a solid auction of 7-year notes. Rates on 30-year mortgages fell below 6% for the first time since September 2022. The yield on the 10-year British gilt reached its lowest level since December 2024.
- COMMODITIES/METALS: Oil and gold saw slight declines, with attention focused on discussions between the U.S. And Iran. Comex copper reached a three-week high on closing.
Looking Ahead:
- Tokyo CPI Inflation (February, Japan)
- Industrial Production (January, preliminary data, Japan)
- India GDP (Q3)
- German Unemployment (February)
- German CPI Inflation (February)
- Remarks by Huw Pill, Chief Economist of the Bank of England
- Canada GDP (Q4)
- U.S. Producer Price Index (January)
- Chicago PMI (February, U.S.)
